FX.co ★ GOLD: Analysis for September 03, 2013

Overview:

Since our last analysis Gold has been trading sideways around the price of 1,392.00. We still may expect testing the level of 1,440.00 before any large descending movement. We are still likely to see it testing the weekly FE level of 161.8% (Weekly third target) at the price of 1,151.00. I saw no supply bar on the volume below the average according to the daily chart. That is the sign that the pair may test FE 100% at the price of 1,440.00 before any movement to the North. The current situation in (4H) is that we have got decreasing in volume in the previous upward move and I placed Fibonacci Expansion level to find the potential end of the corrective upper phase and I got FE 100% at the price of 1,440.00 as a potential level, where we may see the end of the upward corrective phase. Since we are in the short-term downtrend in the daily chart buying Gold looks very risky and I advise you to watch for selling opportunities after corrections.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1,397.46

R2: 1,401.80

R3: 1,408.83

Support levels:

S1: 1,383.40

S2: 1,379.06

S3: 1,372.03

Trading recommendation: Operating with the metal, be careful with short-term buying and look for selling opportunities. My recommendation for a downward short-term target is 1,151.00.